Final Pay Calculator Philippines
Estimate the final pay (last pay / back pay) owed to an employee upon separation — unpaid salary, pro-rated 13th month pay, unused leave conversion, and optional separation pay.
This calculator provides an estimate based on general Philippine final pay rules and the information you enter. Actual amounts may vary depending on your employment contract, company policy, CBA, the reason for separation, and other compensation rules.
What's included in this calculator?
Final pay is the sum of all wages and monetary benefits owed to an employee upon separation, per DOLE Labor Advisory No. 06-20.
Included in the total
- Unpaid salary for days already worked as of separation
- Pro-rated 13th month pay (1/12 of total basic salary earned this year)
- Cash conversion of unused Service Incentive Leave or other convertible leave
- Any other agreed earnings you add — e.g. unpaid commissions, cash bond return
- Separation pay, only if you opt in and it applies to your situation
- Minus any deductions you add — e.g. outstanding loans, unreturned company property
Not calculated here
- Retirement pay — depends on a specific retirement plan or Republic Act No. 7641's formula and eligibility
- Income tax refund — depends on your full-year withholding history
If either applies to you, compute it separately and add it to your total.
Important information
Separation pay is not automatic
It generally applies only to authorized-cause termination (redundancy, retrenchment, closure, or disease), or when a company policy or CBA grants it — not to voluntary resignation. Only opt it in if it actually applies to you.
30-day release timeline is a general guideline
DOLE Labor Advisory No. 06-20 sets a general guideline of releasing final pay within 30 calendar days from separation, unless a more favorable company policy or contract applies.
Retirement pay and tax refunds are out of scope
Both depend on case-specific information — a retirement plan or Republic Act No. 7641's formula, and your full-year withholding history — that this calculator doesn't collect. Compute them separately if they apply.
This is not a payroll calculator
This doesn't calculate SSS, PhilHealth, Pag-IBIG, or other statutory contribution offsets — only the components of final pay itself.
Company policy can provide better benefits
A CBA, company policy, established practice, or employment contract may provide higher benefits than the statutory minimum this calculator estimates.
Frequently asked questions
Final pay (also called "last pay" or "back pay") is the sum of all wages and monetary benefits owed to an employee upon separation from a company, regardless of the cause of separation — resignation, termination, end of contract, or retirement.
Unpaid salary for days already worked, pro-rated 13th month pay, unused leave converted to cash, any other agreed earnings you enter (e.g. unpaid commissions, cash bond return), separation pay if you opt in, minus any deductions you enter (e.g. outstanding loans, unreturned property).
Retirement pay and income tax refunds are not calculated here. Retirement pay depends on a specific retirement plan or Republic Act No. 7641's formula and eligibility rules; a tax refund depends on your full-year withholding history. Both need case-specific information this calculator doesn't collect — if either applies to you, compute them separately and add them to your total.
Not automatically. Separation pay generally applies only to authorized-cause termination (redundancy, retrenchment, closure, or disease) under the Labor Code, or when a company policy or CBA grants it — it is not owed for voluntary resignation or termination for just cause. Only tick "Include separation pay" if you know it applies to your situation.
Typically either one-half month's pay or one whole month's pay per year of service, depending on the authorized cause, with at least six months of a final partial year counting as one whole year. This calculator applies whichever rate you select — it doesn't determine which cause applies to you.
DOLE Labor Advisory No. 06-20 sets a general guideline of within thirty (30) calendar days from the date of separation, unless a more favorable company policy, contract, or CBA applies.
At minimum, unused Service Incentive Leave (5 days/year after one year of service, under Labor Code Article 95) is convertible to cash if unused. Many employers also convert other unused vacation or sick leave under company policy — check your company's leave policy for what applies to you.
Sources & references
Every rule used in this calculator is based on the following official sources — verify them yourself.
- Department of Labor and Employment (DOLE)
Labor Advisory No. 06-20 — Guidelines on the Payment of Final Pay and Issuance of Certificate of Employment
DOLE's guidance defining final pay, the components generally owed upon separation, and the 30-day release timeline used throughout this calculator.
Last reviewed: August 2026View source - Department of Labor and Employment (DOLE)
Labor Code, Book VI — Post-Employment
Covers termination of employment, including Articles 298-299 (as renumbered) on separation pay for authorized causes.
Last reviewed: August 2026View source - Department of Labor and Employment (DOLE)
Labor Code, Book III — Conditions of Employment
Covers Article 95 on Service Incentive Leave, the statutory basis for unused-leave cash conversion.
Last reviewed: August 2026View source
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